Over 100 new hotel signings reflect record investor confidence in India’s hospitality sector

Mumbai, August 26, 2025: India’s hospitality sector is on a remarkable upswing, with Revenue per Available Room (RevPAR) rising 12.9% year-on-year in Q2 2025, according to the latest Hotel Momentum India (HMI) report by JLL. The performance also marks a 10% sequential growth from Q1 2025, signaling sustained recovery and expansion across the industry.

Bengaluru steals the spotlight

Bengaluru emerged as the clear market leader, delivering a 29.4% RevPAR growth in April–June 2025. This exceptional surge was driven by strategic rate optimization and strong demand fundamentals, cementing the city’s position as India’s hospitality growth champion.

Hyderabad demonstrates pricing power

In Hyderabad, Average Daily Rate (ADR) grew 18.6%, showcasing sophisticated revenue management strategies. The city benefitted from rising corporate activity and investment inflows, proving the hospitality sector’s evolution towards a value-driven business model.

Pan-India strength across metros

Key metros Chennai, Delhi, and Mumbai also displayed consistent RevPAR and ADR growth, underpinned by steady corporate movement, government events, and strong summer travel demand. This diversified demand base is helping the industry build sustainable stability.

Record-breaking hotel signings

Investor confidence reached a new peak in Q2 2025, with 106 new hotel signings totaling 13,398 keys. This underscores the long-term growth potential of India’s hospitality sector and highlights investor belief in the sector’s fundamentals.

Industry outlook

“Occupancy levels are stabilizing across most markets, but the real game changer has been ADR growth, which is driving double-digit RevPAR expansion. With over 100 hotels signed last quarter, investor sentiment is at an all-time high. The sector is consolidating, scaling up, and is extremely well-positioned for future growth,” said Roopa George, Senior Vice President, Hotels & Hospitality Group, India, JLL.

With strong fundamentals, diversified demand drivers, and record investor activity, India’s hospitality industry is set to continue its robust growth trajectory in the coming quarters.

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The post Indian Hospitality Achieves Exceptional Growth: RevPAR Up 12.9% in Q2 2025, Bengaluru Sets New Benchmark appeared first on Square Feat India.